The best indicator for Technology (XLK)
We backtested 382 indicators across daily, weekly and hourly charts on real Technology (XLK) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
RSI (25)
On the weekly chart, this is the strongest risk-adjusted edge we found for Technology (XLK) over ~27.6 years — beating buy-and-hold by 1.6% CAGR.
Best multi-indicator combo
Going long only when all 2 agree was the strongest confluence setup we found for Technology (XLK) — trailing buy-and-hold by 3.0% CAGR, out-of-sample. Fewer, higher-conviction trades than any single indicator.
The winner on each chart
Every indicator, ranked
Ranked by Sharpe (risk-adjusted return). Hypothetical, fees included.
| # | Indicator | TF | CAGR | Sharpe | Max DD | Win | Trades | vs B&H |
|---|---|---|---|---|---|---|---|---|
| 1 | RSI (25) ✓ | Weekly | 11.9% | 0.79 | -31.2% | 60.0% | 30 | 1.6% |
| 2 | ALMA 100 Trend ✓ | Weekly | 10.0% | 0.77 | -23.9% | 48.3% | 29 | -0.3% |
| 3 | RSI (21) ✓ | Weekly | 11.4% | 0.76 | -37.4% | 43.6% | 39 | 1.1% |
| 4 | Smoothed MA (Wilder) ✓ | Weekly | 11.4% | 0.75 | -41.3% | 41.5% | 41 | 1.2% |
| 5 | Trend Regularity Adaptive MA ✓ | Weekly | 9.9% | 0.73 | -27.2% | 55.8% | 43 | -0.4% |
| 6 | Disparity (50) ✓ | Weekly | 10.6% | 0.73 | -31.2% | 61.3% | 31 | 0.3% |
| 7 | G-Channel ✓ | Weekly | 11.1% | 0.73 | -38.9% | 48.1% | 27 | 0.8% |
| 8 | CCI (50) ✓ | Weekly | 10.2% | 0.71 | -31.2% | 61.5% | 26 | -0.1% |
| 9 | Relative Momentum Index ✓ | Weekly | 10.9% | 0.7 | -30.0% | 76.2% | 21 | 0.6% |
| 10 | Williams %R (28) ✓ | Weekly | 10.2% | 0.7 | -49.7% | 55.3% | 47 | -0.1% |
| 11 | Ichimoku TK Cross ✓ | Weekly | 9.5% | 0.69 | -40.1% | 54.2% | 24 | -0.8% |
| 12 | Balance of Power ✓ | Weekly | 10.7% | 0.69 | -32.9% | 55.7% | 61 | 0.4% |
| 13 | McGinley Dynamic ✓ | Weekly | 11.1% | 0.69 | -53.9% | 46.7% | 45 | 0.8% |
| 14 | VIDYA ✓ | Weekly | 10.2% | 0.68 | -40.9% | 53.3% | 45 | -0.1% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Technology (XLK), RSI (25) on the weekly timeframe gave the best balance of return and risk in our test. It beat buy-and-hold — but remember: this is a hypothetical backtest of a standard rule, not a recommendation. Markets change. See the methodology and disclaimer.
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